Abstract:
Defining the duties of the state within an Islamic economy depends on the perspective adopted regarding its position and functions. Based on the theory of the "enabling state"—presented in this article through an analytical approach—the responsibilities of an Islamic state cannot be reduced to a minimalist role, such as that of a "night-watchman," a "firefighter," or merely a corrector of market failures. Instead, the Islamic state plays an active role in guiding Islamic society toward equitable and balanced progress. This active management of societal progress implies that the state must undertake various functions, including stewardship, direct provision (operational management), and facilitation. As a steward, the Islamic state is responsible for tasks such as maintaining the value of the national currency, ensuring security, eradicating poverty, narrowing class disparities, legislating, formulating policy, fostering culture, and protecting property rights—responsibilities that cannot be delegated to other entities. In its capacity as a provider, the state is responsible for developing infrastructure, supplying public goods and services, and managing social security; while the state bears the ultimate responsibility for the execution of these tasks, it may delegate their actual implementation to others. The state’s role as a facilitator involves creating conditions for employment and improving the business environment—essentially streamlining economic activities; this category includes the initiation of development projects that may subsequently be transferred to other parties. In this context, the divestment of state ownership or the relinquishment of its sovereign authority can impair the state’s essential functions, thereby slowing the pace of economic progress within Islamic society.